Thursday, January 12, 2017

Uber for Trucking

Amazon prepares to roll out new app matching truck drivers
and shippers.

Amazon already sells everything, and delivers
everything. Now they plan to deliver using their own service, described as the
equivalent of Uber for freight. The giant online retailer is building an app that
matches truck drivers with shippers, a new service that would deepen its
presence in the $800 billion trucking industry, a person with direct knowledge
of the matter reported to Business Insider.

The app, scheduled to launch this summer, is designed
to make it easier for truck drivers to find shippers that need goods moved,
much in the way Uber connects drivers with riders. While Amazon declined to
comment, the app is said to offer real-time pricing and driving directions, as
well as personalized features such as truck-stop recommendations and a
suggested "tour" of loads to pick up and drop off. It could also have
tracking and payment options to speed up the entire shipping process.

This is the latest in Amazon's rumored plan to become a
full-scale logistics company that controls the entire delivery cycle. Over the
past year, Amazon has purchased thousands of trailer trucks and leased dozens
of cargo planes while launching new "last mile" services like Amazon
Flex that take packages straight to the end customer.

But Uber itself is working on rolling out Uber for
trucking, getting into the long haul business with a new division called Uber Freight.
And the new service would put Amazon squarely in competition with numerous
other startups in this space, such as Convoy and Trucker Path, while putting a
direct hit on incumbent players, including the publicly listed ones like Swift
and J.B. Hunt.

But unlike its competitors, Amazon has an advantage in
not having to worry about demand from the shipper's side. To make an "Uber
for trucking" marketplace work, you need demand from both sides of the
equation - shippers and drivers. Of
course, Amazon already has a giant shipping network and a rapidly growing package
volume, so theoretically it shouldn't be hard to find a load match for the
drivers on its platform.

Further down the
road, companies including Uber, Toyota and Alphabet aka Google are working
diligently to develop driverless vehicles, which have the potential to dramatically
shake up the trucking industry. We will be watching this closely, and keep you
apprised as events unfold.

About TOTALogistix

TOTALogistix is a privately held corporation headquartered in Sparta, NJ. We helped define the Third Party Logistics Industry in 1991. Today we provide a wide spectrum of transportation and related supply chain management services to manufacturers, retailers and distributors throughout North America.
In our 20+ years in business, we’ve saved money for nine out of ten companies whose transportation we’ve analyzed. We’re confident we can do the same for you. Improving logistics performance starts here.